What changed in the simplified ESRS: a guide for companies that reported under the originals

You already know how demanding the original ESRS were–sprawling materiality assessments, supplier data collection that went nowhere, and sustainability statements running hundreds of pages. The simplified ESRS, adopted July 3, 2026, addresses many of those pain points: 61% fewer data points, more room for managerial judgment, and better alignment with ISSB and GRI.

But transitioning takes work. This guide from Watershed's policy experts identifies the most significant changes across every standard, interprets what each one means for your reporting workflows, and tells you what to do about it.

What's inside:

• The three themes driving simplification: interoperability, flexibility, and clarity
• The biggest changes to ESRS 1 and ESRS 2, including the new top-down materiality approach and fair presentation obligation
• Standard-by-standard change analysis for E1 (Climate), E2 (Pollution), E3 (Water), E5 (Resource use), S1 (Own workforce), and G1 (Governance) with expert takes on where the real impact lands
• New reliefs: value chain estimates treated as equivalent to actuals, burden-reduction provisions for incomplete data, and streamlined sustainability statements
• Specific action items for each change–what to update, what to retire, and where to focus